Hercules Capital (HTGC) Q4 2025 earnings summary

Executive summary

• Achieved record operating performance in 2025, including record originations, platform expansion, and strong credit quality, with net investment income (NII) of $341.7M and total investment income of $532.5M for the year.

• Q4 2025 NII was $87.0M ($0.48/share), and total investment income was $137.4M, with NII per share at $0.48.

• Ended 2025 with over $5.7B in assets under management, up 20% year-over-year, and portfolio at cost reached $4.47B.

• Maintained robust liquidity of $525.5M, conservative leverage, and continued supplemental shareholder distributions.

• Positioned for growth in 2026, expecting a robust new business environment, increased M&A activity, and a new supplemental cash distribution of $0.28/share for 2026.

Financial highlights

• Record new debt and equity commitments of $3.92B, up 45.7% year-over-year, and gross fundings of $2.28B, up 25.9% year-over-year.

• Q4 2025 total investment income was $137.4M, up 13% year-over-year; NII was $87.0M, up 7% year-over-year.

• Net asset value per share in Q4 was $12.13, up 0.7% from Q3 and from $11.66 year-over-year.

• Q4 return on equity was 16.4%; GAAP effective yield 12.9%, core yield 12.5%.

• Q4 net realized gains totaled $20.3M, with net unrealized depreciation of $16.4M.

Outlook and guidance

• Expect continued market and macro volatility in 2026, but anticipate a robust new business environment and strong growth, supported by disciplined underwriting and ample liquidity.

• Q1 2026 core yield expected in the 12%-12.5% range; prepayments forecasted at $150-$200M.

• Announced a new supplemental cash distribution for 2026 of $0.28/share, payable over four quarters.

• Pending commitments of $587.5M in signed non-binding term sheets as of February 9, 2026.

• SG&A expenses for Q1 expected at $26-$27M; RIA expense allocation ~$4.5M.